The Bangladesh Securities and Exchange Commission (BSEC) has set a target of increasing the size of the country's capital market to 40% of the gross domestic product (GDP) within the next three years.
Currently, the size of the country's capital market is equal to about 10% of the GDP. That is, the regulatory body has planned to increase the market size by about four times within the specified time.
This issue was discussed in a meeting held with a delegation of the Asian Development Bank (ADB) at the BSEC office in Agargaon in the capital on Sunday (March 15).
The meeting was presided over by BSEC Chairman Khandaker Rashed Maksud.
The BSEC said that initiatives are being taken to increase the size of the capital market by increasing the participation of large companies and institutional investors, policy reforms and strengthening market infrastructure.
In addition, emphasis is being placed on increasing transparency and accountability by following international standards in market management.
The commission informed the meeting that a plan has been taken to conduct an integrated capital market audit and analysis program for the sustainable development of the capital market in the long term.
At the same time, initiatives are being taken to make market management consistent with the good governance principles of the International Organization of Securities Commissions (IOSCO).
In the short term, the commission plans to ensure transparency in market operations by increasing digital technology and automation in its activities.
The meeting also discussed the formation of a bond guarantee fund to increase investor confidence.
BSEC further said that to increase the participation of large borrowers in the capital market, the issue of creating a joint framework is being considered, where BSEC and Bangladesh Bank will work in coordination.
At the same time, discussions were also held on providing policy support and necessary incentives to companies with large market shares to list in the stock market.
The ADB delegation was led by the agency's Senior Financial Sector Specialist and Mission Chief Manohari Gunawardena.
The delegation also included Senior Project Officer Mohammad Rashed Al Hasan and Private Sector Development Officer Azizul Quadir.
In the meeting, ADB expressed its interest in providing technical assistance in implementing various reform programs to develop the country's capital market.
In particular, the agency also announced its cooperation in conducting a study to determine a possible model for the formation of an effective bond guarantee fund and identifying suitable government institutions for implementation.